Who can open an account under PPF?
Any resident natural person may open an account for himself or herself and on behalf of a minor or a mentally ill person as guardian.
Irregular Public Provident Fund Accounts: New rules as of October 1, 2024 for the regularization of 3 types of irregular Public Provident Fund accountsAccording to the OSE Website: “Resident Indian persons and persons on behalf of minors or a mentally challenged person can open a Public Provident Fund (PPF) account. Each person can maintain only one Public Provident Fund (PPF) account, except in the case of an account opened in the name of a minor or a mentally challenged person. A mother or a father can open a Public Provident Fund (PPF) account in the name of his or her minor son or daughter. However, a mother and a father cannot open Public Provident Fund (PPF) accounts in the name of the same minor.”
PPF Interest Rate
The PPF offers an interest rate of 7.1% which is fully tax-exempt under Section 80C. This interest rate is for the quarter from July to September 2024.
What if the PPF Account Does the holder become NRI?
A resident who subsequently becomes an NRI during the maturity period of the currency prescribed under the Public Provident Fund Scheme, can continue to subscribe to the fund till its maturity without any need for repatriation. However, such accounts cannot be extended further.Minimum and maximum
The minimum investment is Rs 500 per financial year and the maximum investment is Rs 1,50,000 per financial year. A minimum deposit of Rs 500 is required in the PPF account every year. Failure to do so will result in the PPF account becoming inoperative.
PPF Account Transfer
PPF accounts can be transferred from other banks or post offices, and vice versa. In this case, the PPF account will be considered as a continuous account. The process is described below:
To transfer a PPF account, the customer must submit an application to the bank or post office where the account is held. The old bank or post office will send the relevant documentation, including a cheque or DD for the outstanding balance, to the customer’s new branch address.
Loan against PPF account
If the loan is not repaid, or is only partially repaid, within thirty-six months, interest will be charged on the outstanding loan amount at a rate of six percent per annum instead of one percent per annum, beginning on the first day of the month following the month in which the loan was obtained and ending on the last day of the month in which the loan is finally repaid.
The PPF account can be continued after maturity without making any further deposits. The balance will continue to earn interest at the notified rates. The subscriber can make a withdrawal of any amount within the available balance in each financial year.
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